Irish Home Prices May Fall 80%, Economist Says

Guess the Europeans aren't coming to the rescue after all: IRELAND WILL see more demolition than construction of houses over the next decade, as the economy struggles to recover from the collapse of the housing market and the emergence of “zombie” banks, UCD economist Morgan Kelly told the conference. In a presentation that drew several collective intakes of breath, Mr Kelly predicted that house prices would fall by 80 per cent from peak to trough in real terms. “Construction, but not demolition, of residential and commercial property will fall to zero for the foreseeable future,” he said. http://www.irishtimes.com/newspaper/finance/2009/0113/1231738220759.html